Goodman Property Trust, the NZX-listed commercial and industrial property investor, saw first-half profit drop more than 40 per cent as valuations fell on its investment properties.
Net profit was $39.5 million in the six months ended September 30, down from $67.6m a year earlier, impacted by the shift to an $8.4m loss in the fair value of investment property compared to a $19.8m gain a year earlier, the Auckland-based company said in a statement. Pre-tax operating earnings dipped to $59.8m from $59.9m.
The trust reiterated its previous expectations for full-year pre-tax operating earnings of around 9.1 cents per unit, down from 9.51 cents per unit in 2017. It expects to make the same annual cash distribution of 6.65 cents per unit.
Goodman's investment property was valued at $2.3 billion as of September 30 versus $2.1b a year earlier. The occupancy rate across the portfolio increased to 96.8 per cent from 96 per cent in the prior year and the weighted average lease term extended to 5.8 years versus 5.7 years.
Chair Keith Smith said the board was extremely pleased with the results, and "the progression of the development programme, selective asset sales and targeted acquisitions are all having a positive impact, refining the portfolio and positioning Goodman for sustainable growth."